Fiscal Policy Permanently Steadied By 'The Water Standard'

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Fiscal policiy's incapacity to resolve global inflation, in real time, calls for a more dependable and powerful economc model to replace it. It is identified, here, as the 'The Water Standard'.

The fiat currency sytem without constraint is a unpredictable and untamable tempest, always at the brink of becoming non-linear and virulent or fierce at its worst presentation. That can manifest at any level of inflation such as hyperinflation, stagflation and unchecked financial market volatility.

Those events will generally develop Black Swan events - economic shocks.

Recent Black Swan Example

The high central bank interest rate in the US versus the that of the Eurozone for 2024 to 2025 (approximately 100 basis points higher). Significantly higher trade growth and a steady dollar have all contributed to an undependable UD dollar in 2025 to 2026 - making imported petroleum costly to meet US demand. The 2026 Oil Shock is the consequential Black Swan event of the same period.

Drinking water is inextricably entangled with life and all that supports it, economically. Its vital demand and nature-regulated supply make it the ideal and only meterable candiate for Central Banks' common, reserve commodity, in every corner of the globe.

It is not subject to artificial manipulation unless the environmentally destructive methodology of desalination production of drinkable water is allowed to be included in the Water Standard, drinkable water asset trading market. Xerqon Pty Ltd's proprietary SequencedTrading™ will rise to the economic challenge, as sequenced, following.

(1) Central banks can control water supply to the economy by strategically investing to lower or raise supply, based on currency value demand.

(2) Raising currency value lowers inflation or speeds up the economy, resulting from an increase in velocity of money.

(3) To do that the central bank would have to control (via water utility investment) via a lowering of the water price by increasing its supply to the economy of drinkable water.

(4) The water price will fall inversely proportionately to the supply change.

(5) Local currency value will also fall, in direct response.

(7) To slow down the economy, reversing (3) - inverting the ratio of supply - will lower currency value at sequence (2). Water supply to the economy would be decreased to raise water prices, as well as all other prices and the planned outcome would be achieved.

The financial stability to the macroeconomy paints a far more prudent picture to the SequencedTrading solution than recklessly attempting to tame inflation, via the speculative currency markets, only to have it returned with interest within 2 to 4 quarters - financial cannibalism. ( See <https://www.centreweave.com/post/sequenced-trading-the-post-derivatives-markets>.)

The example elicited is the only achievable answer to global financial supply stability, for the first time in our collective history. It will outperform the former, and short-lived Gold Standard, as well as the more dependable, approximately 500 years of silver-backed international currency markets.

The global water utilities market being availed as an open market allows central bank trading power, to stabilise local currency by spreading risk internationally whether the geographic zones are locally water abundant or arid. Nature regulates the base water supply or the fundamental water supply far more responsively and more steadily than human, market driven commdities production, cartel manipulation and trade. Even El Nino and La Nina events do not detract from that truth. They are extended cyclical events which are statistically accountable, over a long-term period.

Stable global economic conditions usher in an advancement in sustainable investment acceleration for the foreseeable future. The financial culture will transform across the mainstream population.

© Sydney Matinga 2026